General Motors and Honda Motor Co. are planning to collaborate to develop affordable electric vehicles, focusing on compact crossovers, starting 2027.
According to a report, the automakers say that the collaboration will enable the manufacturing of millions of EVs, including compact crossovers.
GM and Honda said that the vehicles would be built on a brand new global electric architecture, powered by GM’s Ultium battery.
GM and Honda are also working to standardize equipment and processes to improve quality, higher throughput, and more affordable EVs for consumers.
They will also discuss possible collaboration on EV battery technology to cut electrification costs and enhance performance.
Both automakers have set ambitious EV goals. Honda aims to achieve carbon neutrality on a global scale by 2050, while GM is hoping to launch an electric-only lineup by 2035.
“By working together, we’ll put people all over the world into EVs faster than either company could achieve on its own,” GM CEO Mary Barra said in the statement.
The co-developed EV lineup will concentrate on the compact crossover segment, accounting for 13 million sales annually.
The automakers have plans to build the EVs at their existing factories. They are working out ways to divide the production among Honda and GM.
The project is part of the automakers’ North American auto alliance announced in September 2020. The alliance was based on a previous partnership in which GM was able to assist in the development of the two new EVs for Honda, powered by the GM Ultium batteries.
This story originally appeared on Automotive News.